EY global survey global survey on managing indirect taxes — VAT/GST electronic filing and data extraction ... VAT/GST returns E-filing and electronic payments can help to

EY global survey

VAT/GST electronic filing and data extraction

Welcome to our latest EY global survey on

managing indirect taxes — VAT/GST electronic filing

and data extraction

VAT/GST compliance and reporting is clearly one of the areas where technology can help to improve indirect tax management. How are tax administrations responding to the digital challenge? Where do VAT/GST payers have more obligations, and where do they have more opportunities? Tax administrations are also turning to technology to help them improve administration and collect and analyze taxpayer data. In the digital age, VAT/GST payers’ obligations are increasing as tax administrations look to collect more taxpayer data electronically. But advances in technology can also ease the burden and allow taxpayers to meet their VAT/GST obligations more easily and at lower cost.

This report provides a snapshot of the VAT/GST electronic data collection, invoicing and archiving rules in 86 countries, based on information provided by our Indirect Tax network. We carried out this survey to accompany our thought leadership report Managing indirect tax data: gaining insight and control in the digital age,1 which is published separately.

In conducting our survey, we found that VAT/GST payers face a wide range of reporting obligations around the world. The frequency of reports and type of VAT/GST data collected varies greatly from country to country. The lack of harmonization and the mounting demands for accurate information about transactions can challenge even the most effective accounting systems and can make it difficult to centralize and standardize processes. At the same time, businesses are increasingly able to adopt electronic solutions that allow them to issue their tax invoices and to store large amounts of data efficiently, cost-effectively and securely.

I hope you find this survey report and our related thought leadership useful for your business. Please be aware that this is a fast-moving area of legislation in which many countries are adopting new rules, and specific guidance should be sought related to each jurisdiction. If you would like to discuss our findings and how they may apply to your operations, please contact me or one of the EY Indirect Tax professionals listed in the Contacts section.

Philip Robinson Global Director — Indirect Tax + 41 58 286 3197 [email protected]

Welcome

1 Managing indirect tax data: gaining insight and control in the digital age, EY, 2014 (available at www.ey.com/indirecttaxdata).

2

To accompany this survey report

Managing indirect tax data: gaining insight and control in the digital age Our latest thought leadership report explores how businesses can use technology to manage indirect tax data more effectively to meet their obligations, reduce risks and seize opportunities.

3

Summary of survey findings 4

EY VAT/GST electronic filing survey: questions and results 8

Question 1: Is electronic filing of periodic VAT/GST returns mandatory or optional? 8

Question 2: Is electronic filing of annual VAT/GST returns mandatory or optional? 10

Question 3: Is electronic filing of EU reports mandatory or optional? 12

Question 4: Are taxpayers required to submit any additional returns 14 (e.g., annual statement, list of suppliers)?

Question 5: Are taxpayers required to submit any transactional details 20 to the tax authorities electronically?

Question 6: Is electronic payment of VAT/GST balances mandatory or optional? 22

Question 7: Is electronic registration for VAT/GST mandatory or optional? 24

Question 8: Can VAT/GST taxpayers notify changes to their registration 26 details electronically (e.g., change of address, change of business activity)?

Question 9: Is electronic deregistration for VAT/GST mandatory or optional? 28

Question 10: Are electronic invoices (for taxable supplies) mandatory or optional? 30

Question 11: Are taxpayers required to submit invoices electronically to the tax administration? 32

Question 12: Are there any other requirements or opportunities to submit data electronically? 34

Question 13: Do the tax authorities use electronic data extraction to perform tax audits? 36

Question 14: How long are taxpayers required to store data for tax purposes? 38

Question 15: Are taxpayers permitted to store data for tax purposes electronically? 42

Question 16: Are taxpayers permitted to store data outside their country 44 of residence (e.g., in a data warehouse, in the cloud)?

Contacts 46

Contents

VAT/GST payers face a range of reporting obligations and statutory provisions related to invoicing and document storage around the world, which can challenge even the most effective accounting systems. The details requested by tax administrations and the frequency of reports vary greatly between countries, which can add to the compliance burden for multinational companies and can make it difficult to centralize and standardize processes.

In September 2013, we conducted a global survey of EY Indirect Tax professionals in 86 countries2 and asked them about the information collected from VAT/GST payers by their local tax administrations, how the information is collected, how long it must be retained, how it may be stored and whether tax administrations extract data from VAT/GST payers’ systems for tax audits. The results are summarized below. Details of the survey questions and responses may be found on pages 8–45 of this report.

VAT/GST returnsE-filing and electronic payments can help to improve efficiency and reduce processing time and costs for tax administrations and VAT/GST payers alike; therefore, it seems likely that more countries will adopt these measures in the future.

• VAT/GST payers currently file periodic VAT returns electronically (use e-filing) in 66 countries.

• VAT/GST payers can currently pay VAT/GST balances electronically in 75 countries.

2 Albania; Argentina; Armenia; Aruba; Australia; Austria; Belgium; Bonaire, Sint Eustatius and Saba (BES Islands); Brazil; Bulgaria; Canada; Chile; China; Croatia; Curaçao; Cyprus; Czech Republic; Denmark; Dominican Republic; Ecuador; El Salvador; Equatorial Guinea; Estonia; Fiji; Finland; France; FYR of Macedonia; Georgia; Germany; Ghana; Greece; Guam; Hungary; Iceland; India; Ireland; Isle of Man; Israel; Italy; Japan; Jordan; Kazakhstan; Kenya; Latvia; Lebanon; Lithuania; Luxembourg; Malawi; Malaysia; Malta; Mexico; Moldova; Mozambique; Namibia; the Netherlands; New Zealand; Norway; Pakistan; Panama; Paraguay; Peru; Philippines; Poland; Portugal; Puerto Rico; Romania; Russia; Singapore; Sint Maarten; Slovak Republic; Slovenia; South Africa; Spain; Sri Lanka; Suriname; Sweden; Switzerland; Thailand; Trinidad and Tobago; Turkey; UK; Uruguay; Venezuela; Vietnam; Zambia; and Zimbabwe.

Summary of survey findings

4 EY global survey


Other VAT/GST reportsPeriodic VAT returns are not the only reports that must be filed by VAT/GST payers in many countries. Additional reporting requirements can add greatly to the VAT/GST compliance burden.

• Annual VAT/GST returns are requested in 38 countries in addition to their periodic filings; 25 of the 38 countries that request annual returns use e-filing.

• European Union (EU) businesses engaged in intra-EU trade must also submit statistical reports (e.g., sales lists and Intrastat). All 28 Member States allow these reports to be submitted electronically.

• Roughly half the countries surveyed (44 out of 86) require VAT/GST payers to submit additional reports to the tax administration other than periodic filings (e.g., lists of customers and suppliers).

• In addition, in 37 countries VAT/GST payers may submit additional information about their activities electronically to the tax administration.

Transactional information• In 23 countries VAT/GST payers must provide

information about their individual transactions to the tax administration.

• In 16 countries VAT/GST payers must submit individual tax invoices to the tax administration.

VAT/GST payers often find these requirements onerous as they can delay operations and increase processing costs for individual transactions. Although these requirements are not widespread and most countries do not request this information, where they do exist, their impact can be significant, especially for companies with large trade volumes.

Tax auditsTax administrations are increasing their use of software tools to detect indirect tax errors and weaknesses in taxpayers’ ERP systems and controls. The survey indicates that data analysis in some form is widespread, with 69 countries reporting that the tax administration uses data extracted electronically from taxpayers’ systems to carry out VAT/GST audits. This trend also seems likely to increase with the growing availability of data analytic software and the focus on VAT/GST compliance by tax administrations.

5VAT/GST electronic filing and data extraction


VAT/GST registration formalitiesIn many countries, businesses would like to be able to register as VAT/GST payers and deal with registration formalities (such as changes in their details) online. Currently, less than half of the countries surveyed allow businesses to deal with VAT/GST registration matters electronically.

• Thirty-six countries allow electronic registration.

• Thirty-eight countries allow VAT/GST payers to notify changes in their details electronically.

• Twenty-three countries allow VAT/GST payers to deregister electronically.

As government departments and businesses increasingly use the internet to carry out a wide range of tasks, it seems likely that more countries will allow electronic VAT/GST registration/deregistration in the future.

Electronic invoicing and archivingMore and more commercial documents are being shared and stored electronically with the increased use of the internet, mobile phone applications and cloud computing. Most tax administrations support electronic invoicing and archiving, and more seem likely to do so in the future. Currently, the rules for electronic invoicing and archiving vary between countries, and not all have kept pace with advances in technology.

These factors can make it difficult for VAT/GST payers to adopt efficient and cost-effective business process. For example, many multinational companies struggle to centralize document production and storage and to apply standardized policies across jurisdictions. Also, many VAT/GST payers choose to retain records for longer than the statutory minimum period, as they may need their original documents and ledgers for possible future tax audits and disputes.

It seems likely that more tax administrations will allow electronic invoicing and archiving in the future, including offshore storage of documents, as these practices spread commercially and administrations become more comfortable with the reliability and security of electronic data. It is also to be hoped that more countries will harmonize rules and align their policies for data retention.

• Electronic invoicing is currently permitted for VAT/GST invoices in 72 countries surveyed.

• Document retention periods vary greatly between countries, with most countries (72 out of 86) expecting VAT/GST payers to retain information for five years or longer. In 26 of these countries, documents may need to be retained for10 years or longer.

• Electronic storage can ease the burden of needing to retain large amounts of VAT/GST documents for extended periods. Only four countries surveyed do not allow VAT/GST payers to store tax data electronically (although in 25 countries, VAT/GST payers must obtain specific permission to use electronic storage).

• Centralized storage of VAT/GST records (e.g., in a data warehouse) is permitted in 61 countries (although VAT/GST payers must request specific permission to use offshore storage in 20 countries).

6 EY global survey


7

Question 1: Is electronic filing of periodic VAT/GST returns mandatory or optional?a) Mandatoryb) Optionalc) Not available

This question related to how periodic VAT/GST returns are submitted by large taxpayers. In most cases, these returns are submitted monthly. Most of the countries surveyed allow or require taxpayers to submit their periodic VAT/GST returns electronically (see Figure 1). Electronic filing is compulsory for large taxpayers in 43 countries, optional in 23, and optional and compulsory in 2 countries depending on the circumstances; only 18 countries do not offer this facility. Electronic filing of periodic returns is available in all 28 EU Member States,3 apart from Italy (where taxpayers do not submit periodic returns). Details of individual country responses to this question are outlined in Figure 2.

3 Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden and UK.

Source: EY

Figure 1: Electronic filing of periodic VAT/GST returns (Question 1)

EY VAT/GST electronic filing survey: questions and results

8

Questions and results

EY global survey


2

18

23

43a) Mandatory

b) Optional

a) and b)

c) Not available

Figure 2: Country breakdown of electronic VAT/GST returns (Question 1)

Countries where it is mandatory

Countries where it is optional

Countries where it is mandatory or optional depending on circumstances

Countries where it is not available

• Albania• Argentina• Armenia• Australia• Austria• Belgium• Brazil• Croatia• Denmark• Dominican Republic• Ecuador• El Salvador• Estonia• France• FYR Macedonia• Georgia• Germany• Greece• Iceland• India• Ireland• Israel• Latvia• Luxembourg• Mexico• Moldova• The Netherlands• New Zealand• Norway• Pakistan• Panama• Peru• Philippines• Portugal• Puerto Rico• Singapore• Slovenia• South Africa• Spain• Turkey• UK• Uruguay• Venezuela

• Bonaire, Sint Eustatius and Saba (BES)

• Bulgaria• Chile• China• Curaçao• Cyprus• Czech Republic• Finland• Guam• Hungary• Isle of Man• Japan• Kenya• Kazakhstan• Lithuania• Malta• Paraguay• Poland• Romania• Russia• Sweden• Thailand• Vietnam

• Canada• Slovakia

• Aruba• Equatorial Guinea• Fiji• Ghana• Italy• Jordan• Lebanon• Malawi• Malaysia• Mozambique• Namibia• Sint Maarten• Sri Lanka• Suriname• Switzerland• Trinidad and Tobago• Zambia• Zimbabwe

9



Question 2: Is electronic filing of annual VAT/GST returns mandatory or optional?a) Mandatoryb) Optionalc) Not availabled) Not applicable (no annual return)

This question related to how annual VAT/GST returns are submitted by large taxpayers. In 48 of the 86 countries surveyed, there is no annual VAT return. In the 38 countries that do require taxpayers to submit an annual return, most allow or require taxpayers to submit their annual VAT/GST returns electronically (see Figure 3); electronic filing is compulsory for large taxpayers in 17 countries, optional in 8, and optional and compulsory in 1 country depending on the circumstances. Only 12 countries do not offer electronic filing for annual returns. Some countries, such as Macedonia, allow electronic filing for some returns but not for all submissions. Annual returns are required or optional in only 10 EU Member States; however, all Member States that require annual reports allow electronic filing. Details of individual country responses to this question are outlined in Figure 4.

Source: EY

Figure 3: Electronic filing for annual VAT/GST returns (Question 2)

10


EY global survey

1

48

12

8

17

a) Mandatory

b) Optional

d) Not applicable

a) and b)

c) Not available

Figure 4: Country breakdown of electronic filing for annual VAT/GST returns (Question 2)





Countries where it is not applicable

• Argentina• Austria• Croatia• Germany• Greece• Iceland• India• Ireland• Italy• Latvia• Luxembourg• The Netherlands• Pakistan• Philippines• Portugal• Puerto Rico• Spain

• Australia• BES• Curaçao• Finland• Isle of Man• Japan• Lithuania• Uruguay

• Canada • Equatorial Guinea• FYR Macedonia• Ghana• Guam• Malawi• Mexico• Mozambique• Namibia• Sint Maarten• Suriname• Zambia• Zimbabwe

• Albania• Armenia• Aruba• Belgium• Brazil• Bulgaria• Chile• China• Cyprus• Czech Republic• Denmark• Dominican Republic• Ecuador• El Salvador• Estonia• Fiji• France• Georgia• Hungary• Israel• Jordan• Kenya• Kazakhstan• Lebanon

• Malta • Malaysia• Moldova• New Zealand• Norway• Panama• Paraguay• Peru• Poland• Romania• Russia• Singapore• Slovakia• Slovenia• South Africa• Sri Lanka• Sweden• Switzerland• Thailand• Trinidad and Tobago• Turkey• UK• Venezuela• Vietnam

11



Question 3: Is electronic filing of EU reports mandatory or optional?a) Mandatoryb) Optionalc) Not available

This question pertains to monthly reports related to intra-EU trade (e.g., Intrastat and sales listing reports) that are exclusively required for taxpayers active in the 28 EU Member States. All Member States allow or require taxpayers to submit their Intrastat returns electronically (see Figure 5). Electronic filing is compulsory in 18 Member States, optional in 6, and optional and compulsory in 4 countries depending on the circumstances. Generally, countries that impose e-filing for periodic returns also impose it for Intrastat, but this is not the case in all countries (e.g., Estonia uses compulsory monthly e-filing, but e-filing for Intrastat is optional). Details of individual country responses to this question are outlined in Figure 6.

Source: EY

Figure 5: Electronic filing of EU reports (Question 3)

4

18

6

a) Mandatory

b) Optional

a) and b)

12


EY global survey

Figure 6: Country breakdown of electronic filing of EU reports (Question 3)




• Austria• Belgium• Bulgaria• Croatia• Cyprus• Czech Republic• Denmark• France• Germany• Greece• Hungary• Ireland• Italy• Latvia• The Netherlands• Portugal• Slovakia• Spain

• Estonia• Finland• Lithuania• Poland• Romania• Sweden

• Luxembourg• Malta• Slovenia• UK

13



Question 4: Are taxpayers required to submit any additional returns (e.g., annual statement, list of suppliers)?a) Yesb) No

This question asked whether the tax administration requires VAT/GST taxpayers to file additional VAT reports other than VAT/GST and Intrastat returns. For example, returns requesting details about taxpayers’ transactions, customers or suppliers (see Figure 7). The 86 countries we surveyed are split almost exactly between those that do request additional information and those that do not. Thirteen of the 28 EU Member States require additional reports. Details of individual country responses to this question are outlined in Figure 8.

Figure 9 outlines the type of information required by each country in these additional reports (Question 4a). The chart indicates a wide variation in the amount and type of detail requested by countries, which helps to illustrate why many multinational companies experience difficulties in using shared service centers (SSCs) to complete returns for multiple countries. Because of the wide range of information requested, it can be very difficult for companies to standardize processes both for collecting the information required and in formatting the way in which it must be supplied.

Source: EY

Figure 7: Additional VAT/GST report filings (Question 4)

4442

a) Yes

b) No

14


EY global survey

Figure 8: Country breakdown of additional VAT/GST report filings (Question 4)

Countries where taxpayers are required to submit additional returns

Countries where taxpayers are not required to submit additional returns

• Argentina• Armenia• Belgium• BES• Brazil• Curaçao• Czech Republic• Dominican Republic• Ecuador• El Salvador• Estonia• Fiji• France• Greece• Hungary• Iceland• India• Israel• Italy• Jordan• Kenya• Kazakhstan

• Latvia• Lebanon• Malaysia• Mexico• Moldova• Mozambique• Pakistan• Paraguay• Philippines• Portugal• Romania• Slovakia• Slovenia• South Africa• Spain• Sint Maarten• Turkey• Uruguay• Venezuela• Vietnam• Zambia• Zimbabwe

• Albania• Aruba• Australia• Austria• Bulgaria• Canada• Chile• China• Croatia• Cyprus• Denmark• Equatorial Guinea• Finland• FYR Macedonia• Georgia• Germany• Ghana• Guam• Ireland• Isle of Man• Japan• Lithuania

• Luxembourg• Malawi• Malta• Namibia• The Netherlands• New Zealand• Norway• Panama• Peru• Poland• Puerto Rico• Russia• Singapore• Sri Lanka• Suriname• Sweden• Switzerland• Thailand• Trinidad and

Tobago• UK

15



Figure 9: Summary of additional returns VAT/GST taxpayers are required to submit (Question 4a)

Country Outline of additional VAT/GST returns taxpayers are required to submit (e.g., annual statement, list of suppliers)

Argentina Turnover tax: an annual return must be filed in which an allocation coefficient is calculated (which will be utilized to allocate revenues as the taxable base among the different jurisdictions).

Armenia A statement of tax invoices received and issued and a statement of used hard copies of tax invoices are required quarterly.

Belgium A listing of supplies made to Belgian taxable persons in Belgium during the previous year must be filed annually, at the latest by 30 March of the year following the year when the supplies took place.

BES A correction tax return (indicating the correct figures) should be filed to correct errors.

Brazil Different regulations apply according to the taxpayer’s location (state and municipality) and its activity; therefore, some returns apply only to specific taxpayers and situations. For instance, when a taxpayer has a positive balance of certain federal VAT taxes (such as IPI or PIS/COFINS), it may complete a PER/DCOMP return, which is used by the taxpayer to offset the balance against others types of Federal Taxes, such as corporate income tax.

Czech Republic An overview of all local reverse-charge transactions (e.g., supplies involving gold, CO2 allowances, construction services and scrap) should be submitted as an enclosure to the VAT return in the tax period when the transaction is performed.

Curaçao A correction tax return (indicating the correct figures) should be filed to correct errors.

Dominican Republic The following reports must be submitted: details of purchases (monthly), VAT withheld (monthly), VAT credited or advanced (monthly), detail of sales (annually) and annual statements (annually).

Ecuador A monthly report of all sales and purchases is required.

El Salvador The following reports must be submitted:

Monthly:• Withholding and Advanced Income Tax Payment returns (Form F-14)• Withholdings and Collection of VAT (Form F-930)

Annually:• Municipal Tax return (Form F-1)• Taxpayer Registry Form (Form F-210)• Notification Address Update Summary (Form F-211)• Withholding Summary (Form F-910)• Dividend and Profit Distribution Summary and/or Shareholder List

(Form F-915)• Capital Gains or Losses Summary (Form F-944)• Report of Related Party Operations (Form F-982)• Report of Suppliers, Clients, Creditors and Debtors (Form F-987)• Income Tax return (Form F-11)

16


EY global survey


Fiji An input schedule must be filed with the tax return.

France A special claim has to be submitted to obtain the refund of VAT credits; the claim can be submitted monthly, quarterly or annually.

Greece Pursuant to the provisions of the Transaction Tax Reporting Code, taxpayers are obliged to file lists containing information about transactions with customers and suppliers exceeding ¤300 (customer/supplier lists). These lists should be filed electronically by 25 June of the year following the year when the transactions took place.

Hungary A domestic summary report may be required. Effective 1 January 2013, taxpayers have to complete summary reports at the invoice level of domestic sales and purchases of goods or services subject to VAT if the VAT amount of the invoices (single invoice or more invoices coming from one supplier) exceeds HUF2 million (approximately €7,000). The reports are to be filed with their VAT returns. Complex rules apply for credit notes, among other things. As the domestic summary report forms part of the VAT return, it should be filed with the same frequency as the VAT return.

Iceland Annual statements.

India The federal and state governments prescribe various statements and reconciliations that have to be submitted periodically. The frequency of submission depends on the legislation, which can be different for federal levies and also different for state levies from state to state.

Israel All invoices above NIS16,000 (VAT input) need to be submitted with the return. Invoices issued to or received from a Palestinian company must be submitted as well.

Italy Taxpayers are required to submit the following reports:• The “Annual VAT Data Communication” (a summary of the transactions

carried out during the previous year for statistical purposes) must be submitted by the end of February of the following year.

• The so-called “Spesometro” (a report of the total amount of transactions performed per clients and suppliers). It must be submitted by 12 November 2013 for FY 2012 and by 30 April for subsequent years.

• A notice communicating any transactions carried out with subjects resident in “blacklisted” countries (if any) must be submitted by the end of the month following the month or quarter when the transactions were carried out.

• All letters received from frequent exporter customers asking for the application of the VAT zero-rated regime must be submitted by the 16th day of the month following the month when the invoice applying the VAT zero-rated regime was issued.

Jordan An imported services declaration must be submitted, if applicable.

Kazakhstan The following information must be submitted: registers of received and issued VAT invoices, registers of VAT invoices issued to companies established in the Customs Union, information of VAT amounts claimed for refund, etc. This information should be reflected in attachments to the main VAT return and must be provided on a quarterly basis.

17




Kenya An input tax schedule and schedules to support zero-rated sales must be submitted monthly with the VAT return.

Latvia In addition to EU sales lists (purchases and supplies), detailed information must be provided relating to all other supplies and purchases made (i.e., local and non-EU) as an annex to the VAT return. This must be submitted with the VAT return.

Lebanon Lists of the 10 largest suppliers and 10 largest clients must be submitted with the quarterly VAT return.

Lithuania Registers of sales and/or purchase invoices must be submitted (the data required includes invoice number, invoice date, name and the VAT number/company number of the supplier/customer, taxable amount, VAT amount and the total invoice value). This information must be submitted after a special request is received from the tax authorities until the taxpayer receives a separate withdrawal of the request by the tax authorities. The information must be submitted monthly.

Malaysia An annual audit certificate must be submitted and signed by a public accountant (not in the employment of the sales tax licensee) in relation to records required to be kept.

Mexico A VAT information return (DIOT) must be filed monthly, and a withholding VAT information return (DIM) must be filed annually.

Moldova A list of the tax invoices received and a list of the tax invoices issued must be submitted monthly.

Mozambique Annual statements and a statutory report must be submitted annually.

The Netherlands A supplementary VAT return is required only to correct information supplied in earlier VAT returns.

Pakistan A quarterly return is required from certain taxpayers (e.g., retailers).

Paraguay Detailed information related to sales, purchases and withholding tax must be submitted.

Philippines Summary lists of sales, purchases and importations are required.

Portugal Taxable entities resident in Portugal must communicate to the Bank of Portugal all economic or financial transactions carried out outside of Portugal or foreign-exchange transactions for which the total annual amount of inputs and outputs exceed €100,000. This communication should be made monthly.

Romania Taxpayers are required to submit an informative statement (Form 394) regarding local supplies/acquisitions of goods/services supplied to/from Romanian taxpayers. This report must be submitted monthly/quarterly. Annually, taxpayers that submit quarterly VAT returns and that have not made any intra-Community acquisitions of goods should submit a specific statement (Form 094).

18


EY global survey


Sint Maarten A correction tax return (indicating the correct figures) should be filed to correct any errors.

Slovakia Effective 1 January 2014, VAT ledgers must be filed containing a complete list of output and input invoices with detailed information about the invoices (e.g., VAT numbers, a description of the services and goods supplied, the serial numbers of invoices, amounts net of tax and VAT amount).

Slovenia If supplies subject to the domestic reverse charge have been made, a domestic reverse-charge report must be submitted for every VAT return period when such supplies were made. The tax authorities may also request additional information (e.g., books of invoices) at their discretion without starting a tax audit.

South Africa The IT14SD (a supplementary return to the annual corporate tax return) is issued randomly to taxpayers. Taxpayers who receive the IT14SD must reconcile their VAT returns for a financial year to their turnover and cost of sales figures declared in their financial statements.

Spain Taxpayers must submit the following additional returns: Forms 322 and 353 (for taxpayers applying for the Special VAT Group scheme) and Form 347 (an Annual Recapitulative Statement of transactions performed with third parties).

Suriname There is no standard requirement or standard frequency for additional information.

Turkey Taxpayers must declare all their sales and purchases valued at more than TRY5,000 on a monthly basis in the All Sales (BS) and All Purchases (BA) forms.

Uruguay Taxpayers must submit returns detailing VAT charged on sales to taxpayers, VAT paid on local purchases, local VAT exempt purchases, importation VAT, withholding taxes and the related taxable amounts.

Venezuela The VAT withholdings tax return must be submitted quarterly. Only Special Taxpayers are required to submit this return in accordance with the Special Taxpayers’ Calendar.

Vietnam The following additional returns are required: a list of invoices of goods and services sold, a list of invoices of goods and services purchased, a table of allocation of the creditable VAT amount of goods and services purchased in the month (if applicable), a list of VAT amounts already paid for turnover derived from extra-provincial mobile construction and the installation or the sale of goods (if applicable). This information is required monthly and/or quarterly (if applicable).

Zambia A list of supplies on which VAT has been claimed and a list of invoices issued on which VAT is payable must be submitted monthly.

Zimbabwe A schedule of suppliers, invoice numbers and amount of input tax claimed must be submitted.

19



Question 5: Are taxpayers required to submit any transactional details to the tax authorities electronically?a) Yesb) No

This question related to whether VAT/GST payers are required to submit details of individual transactions to the tax administration. Submission of transactional data may be required before a transaction is carried out (and carrying out the transaction may be dependent on authorization from the tax administration), when the transaction is performed (real-time reporting) or after the transaction has been carried out. The requirement to submit transactional reporting, where it exists, is generally used by tax administrations as an anti-fraud measure because it allows the tax administration to monitor transactions and the conduct of VAT/GST payers very closely.

Currently, only 23 of the 86 countries surveyed require taxpayers to submit data about transactions (see Figure 10); only 6 of the 28 EU Member States require details of transactions. Although most countries do not request transactional information, for taxpayers resident in the countries that do, these compliance obligations can be extremely onerous. In addition, where prior approval is needed from the tax administration before a transaction may be completed, the process can slow the pace of trade, and it can add to accounting and reporting obligations and processing costs generally (e.g., because the sales made to a single customer in a month cannot be consolidated into a single invoice). Details of countries that request transactional information are outlined in Figure 11.

Source: EY

Figure 10: Filings of transactional details (Question 5)

23

63a) Yes

b) No

20


EY global survey

Figure 11: Country breakdown of countries that require transactional details to be submitted to the tax administration (Question 5)

Countries where taxpayers are required to submit transactional data

Countries where taxpayers are not required to submit transactional data

• Albania• Argentina• Brazil• Bulgaria• China• Croatia• Dominican Republic• Ecuador• El Salvador• FYR Macedonia• Georgia• Hungary• Israel• Latvia• Namibia• Pakistan• Paraguay• Peru• Slovakia• Slovenia• Turkey• Venezuela• Zambia

• Armenia• Aruba• Australia• Austria• Belgium• BES• Canada• Chile• Curaçao• Cyprus• Czech Republic• Denmark• Equatorial Guinea• Estonia• Fiji• Finland• France• Germany• Ghana• Greece• Guam• Iceland• India• Ireland• Isle of Man• Italy• Japan• Jordan• Kenya• Kazakhstan• Lebanon• Lithuania

• Luxembourg• Malawi• Malaysia• Malta• Mexico• Moldova• Mozambique• The Netherlands• New Zealand• Norway• Panama• Philippines• Poland• Portugal• Puerto Rico• Romania• Russia• Singapore• Sint Maarten• South Africa• Spain• Sri Lanka• Suriname• Sweden• Switzerland• Thailand• Trinidad and Tobago• UK• Uruguay• Vietnam• Zimbabwe

21



Question 6: Is electronic payment of VAT/GST balances mandatory or optional?a) Mandatoryb) Optionalc) Not available

This question related to how periodic VAT/GST balance payments must be made by large taxpayers (i.e., the excess of output VAT/GST charged to customers after deducting input VAT on business purchases and expenses). Large businesses are defined as not eligible for any special regime or treatment available for small or medium-sized enterprises. In most countries, VAT/GST balance payments must or may be made electronically (see Figure 12); electronic payment is compulsory for large taxpayers in 29 countries, optional in 44, and optional and compulsory or optional and not permitted in 2 countries depending on the circumstances. Only 11 countries do not offer this facility. Electronic payment is available in all 28 EU Member States apart from Cyprus. Allowing VAT/GST payments to be made electronically is likely to be beneficial for tax administrations and VAT/GST payers by facilitating administration and speeding up payment transfer times. Details of individual country responses to this question are outlined in Figure 13.

Source: EY

Figure 12: Electronic VAT/GST payments (Question 6)

1111

45

28

a) Mandatory

b) Optional

a) and b)

a) and c)

c) Not available

22


EY global survey

Figure 13: Country breakdown of electronic VAT/GST payments (Question 6)


Countries where it is optional Countries where it is not available


Countries where it is mandatory or not available depending on circumstances

• Australia• Belgium• Bulgaria• Croatia• Ecuador• Estonia• Finland• France• FYR Macedonia• Georgia• Germany• Greece• Hungary• Iceland• India• Ireland• Italy• Kenya• Latvia• Lithuania• Norway• Pakistan• Poland• Puerto Rico• Slovakia• Slovenia• United Kingdom• Zambia

• Albania• Argentina• Aruba• Armenia• Austria• BES• Brazil• Canada• Chile• China• Curaçao• Czech Republic• Denmark• Dominican Republic• El Salvador• Equatorial Guinea• Guam• Isle of Man• Israel• Japan• Jordan• Kazakhstan• Luxembourg

• Malta • Mexico• Moldova• Namibia • The Netherlands• New Zealand• Panama• Paraguay• Peru• Portugal• Romania• Sint Maarten• South Africa• Spain• Suriname• Sweden• Switzerland• Thailand• Turkey• Uruguay• Venezuela• Vietnam

• Cyprus• Fiji• Ghana• Lebanon• Malawi• Malaysia• Mozambique• Russia• Sri Lanka• Trinidad and Tobago• Zimbabwe

• Singapore • Philippines

23



Question 7: Is electronic registration for VAT/GST mandatory or optional?a) Mandatoryb) Optionalc) Not available

This question related to whether businesses that need to register as VAT/GST payers may do so electronically. Currently, more than half the countries surveyed (50 out of 86) do not offer electronic VAT/GST registration (see Figure 14). Electronic registration is compulsory for large taxpayers in 10 countries, optional in 24, and compulsory or not available in another 2 countries depending on the circumstances. In the EU, Slovenia is the only Member State where electronic registration is compulsory for all VAT payers. In Italy and Slovakia, electronic VAT registration is compulsory for some taxpayers (depending on the circumstances), electronic registration is available on an optional basis in 10 Member States, and it is not available in 15, including some countries (such as the Netherlands) that allow or require electronic filing for VAT returns. Electronic VAT/GST registration is useful for businesses, especially for nonresidents, in many of the countries where it has been adopted. Details of individual country responses to this question are outlined in Figure 15.

Source: EY

Figure 14: Electronic VAT/GST registration (Question 7)

2 10

24

50

a) Mandatory

b) Optional

a) and c)

c) Not available

24


EY global survey

Figure 15: Country breakdown of electronic VAT/GST registration (Question 7)



Countries where it is not available Countries where it is mandatory or not available depending on circumstances

• Australia• Ecuador• India• Kenya• Mexico• Pakistan• Panama• Slovenia• Switzerland• Venezuela

• Armenia• BES• Brazil• Bulgaria• Canada• Chile• Czech Republic• Denmark• Dominican Republic• Estonia• Finland• Ireland• Israel• Japan• Latvia• Lithuania• Malaysia• Malta• Norway• Puerto Rico• Singapore• Thailand• UK• Vietnam

• Albania• Argentina• Aruba• Austria• Belgium• China• Croatia• Curaçao• Cyprus• El Salvador• Equatorial Guinea• Fiji• France• FYR Macedonia• Georgia• Germany• Ghana• Greece• Guam• Hungary• Iceland• Isle of Man• Jordan• Kazakhstan• Lebanon• Luxembourg

• Malawi• Moldova• Mozambique• Namibia• The Netherlands• New Zealand• Paraguay• Peru• Philippines• Poland• Portugal• Romania• Russia• Sint Maarten• South Africa• Spain• Sri Lanka• Suriname• Sweden• Trinidad and Tobago• Turkey• Uruguay• Zambia• Zimbabwe

• Italy• Slovakia

25



Question 8: Can VAT/GST taxpayers notify changes to their registration details electronically (e.g., change of address, change of business activity)?a) Yesb) No

This question related to whether VAT/GST payers can notify the tax administration electronically about changes to their details after registration (e.g., a change of address or change of business activity). Currently, less than half the countries surveyed (38 out of 86) offer this facility (see Figure 16). In the EU, 14 Member States allow VAT payers to notify changes to their registration details electronically. Details of individual country responses to this question are outlined in Figure 17.

Source: EY

Figure 16: Electronic notification of changes to VAT/GST registration (Question 8)

1

38

47

a) Yes

b) No

a) and b)

26


EY global survey

Figure 17: Country breakdown of electronic notification of VAT/GST registration changes (Question 8)

Countries where taxpayers can notify changes electronically

Countries where taxpayers cannot notify changes electronically

Countries where it depends on circumstances

• Argentina• Australia• Austria• BES• Canada• Chile• Czech Republic• Denmark• Dominican Republic• Estonia• Finland• Hungary• India• Israel• Italy• Japan• Kenya• Latvia• Lithuania• Luxembourg• Mexico• New Zealand• Norway

• Pakistan• Panama• Paraguay• Peru• Portugal• Puerto Rico• Singapore• Slovenia• South Africa• Spain• Suriname• Switzerland• UK• Venezuela• Vietnam

• Albania• Armenia• Aruba• Belgium• Brazil• Bulgaria• China• Croatia• Curaçao• Cyprus• Ecuador• El Salvador• Equatorial Guinea• Fiji• France• FYR Macedonia• Georgia• Germany• Ghana• Greece• Guam• Iceland• Ireland• Isle of Man

• Jordan• Kazakhstan• Lebanon• Malawi• Malta• Moldova• Mozambique• Namibia• The Netherlands• Philippines• Poland• Romania• Russia• Sint Maarten• Slovakia• Sri Lanka• Sweden• Thailand• Trinidad and Tobago• Turkey• Uruguay• Zambia• Zimbabwe

• Malaysia

27



Question 9: Is electronic deregistration for VAT/GST mandatory or optional?a) Mandatoryb) Optionalc) Not available

This question related to whether businesses that need to deregister as VAT/GST payers (e.g., because of business cessation) may do so electronically. Currently, the majority of the countries surveyed (63 out of 86) do not offer electronic VAT/GST deregistration (see Figure 18). Electronic deregistration is compulsory for large taxpayers in just 5 countries and is optional in 18. Electronic deregistration is mandatory in just one EU Member State (Slovenia), and it is optional in 9 Member States, which equates to the position for electronic VAT registration (see Question 7) apart from Malta (which allows VAT payers to register electronically but does not allow subsequent VAT registration changes to be notified in this way). Details of individual country responses to this question are outlined in Figure 19.

Source: EY

Figure 18: Electronic VAT/GST deregistration (Question 9)

5

63

18

a) Mandatory

b) Optional

c) Not available

28


EY global survey

Figure 19: Country breakdown of electronic notification of VAT/GST deregistration (Question 9)




• India• Mexico• Norway• Slovenia• Switzerland

• Argentina• Australia• BES• Chile• Czech Republic• Denmark• Estonia• Georgia• Hungary• Italy• Japan• Latvia• Lithuania• Malaysia• New Zealand• Singapore• Spain• UK

• Albania• Armenia• Aruba• Austria• Belgium• Brazil• Bulgaria• Canada• China• Croatia• Curaçao• Cyprus• Dominican Republic• Ecuador• El Salvador• Equatorial Guinea• Fiji• Finland• France• FYR Macedonia• Germany• Isle of Man• Israel• Jordan• Kenya• Kazakhstan• Lebanon• Luxembourg• Malawi• Malta• Moldova• Mozambique

• Namibia• The Netherlands• Pakistan• Paraguay• Panama• Ghana• Greece• Guam• Iceland• Ireland• Peru• Philippines• Poland• Portugal• Puerto Rico• Romania• Russia• Sint Maarten• Slovakia• South Africa• Sri Lanka• Suriname• Sweden• Thailand• Trinidad and Tobago• Turkey• Uruguay• Venezuela• Vietnam• Zambia• Zimbabwe

29



Question 10: Are electronic invoices (for taxable supplies) mandatory or optional?a) Mandatoryb) Optionalc) Not available

This question related to whether VAT/GST payers may issue electronic invoices for taxable supplies (see Figure 20). The majority of countries surveyed (72) allow electronic invoicing in these circumstances; e-invoicing is compulsory in 5 countries, optional in 65 countries, and mandatory and optional in 2 countries depending on the circumstances. All 28 EU Member States have permitted electronic invoicing since 1 January 2013, in accordance with the EU Invoicing Directive.4

Electronic invoicing can help to facilitate VAT/GST accounting and can allow VAT/GST payers the opportunity to standardize invoice templates and processes. The trend toward e-invoicing for VAT/GST seems likely to increase as more companies adopt it commercially; therefore, it is expected that even more countries will allow electronic invoicing for VAT/GST purposes in the future. However, the details required for tax invoices may still vary greatly between countries, which can make it difficult for VAT/GST payers to adopt the most-effective invoicing processes for multiple jurisdictions. Details of individual country responses to this question are outlined in Figure 21.

Source: EY

Figure 20: Electronic invoicing (Question 10)

4 Directive 2010/45/EU.

12 5

13

65

a) Mandatory

b) Optional

a) and b)

Not applicable

c) Not available

30


EY global survey

Figure 21: Country breakdown of electronic invoicing (Question 10)


Countries where it is optional Countries where it is not available



• Austria• Brazil• Georgia• Mexico• Turkey

• Armenia• Aruba• Australia• Belgium• BES• Bulgaria• Canada• Chile• Croatia• Curaçao• Cyprus• Czech Republic• Denmark• Dominican Republic• Ecuador• El Salvador• Equatorial Guinea• Estonia• Finland• France• Germany• Ghana• Greece• Guam• Hungary• Iceland• India• Ireland• Isle of Man• Israel• Italy• Jordan• Latvia

• Lebanon• Lithuania• Luxembourg• Malawi• Malaysia• Malta• The Netherlands• New Zealand• Norway• Pakistan• Peru• Poland• Portugal• Puerto Rico• Romania• Russia• Singapore• Sint Maarten• Slovakia• Slovenia• South Africa• Spain• Sri Lanka• Suriname• Sweden• Switzerland• Thailand• Trinidad and Tobago• UK• Venezuela• Vietnam• Zambia

• Albania• China• Fiji• FYR Macedonia• Kenya• Kazakhstan• Moldova• Mozambique• Namibia• Panama• Paraguay• Philippines• Zimbabwe

• Argentina• Uruguay

• Japan

31



Question 11: Are taxpayers required to submit invoices electronically to the tax administration?a) Yesb) No

This question related to whether VAT/GST payers must submit details of their invoices electronically to the tax administration (see Figure 22). This requirement is generally adopted as an antifraud measure. The requirement may be for submission before the invoice is issued (and issuing the invoice may depend on acceptance by the tax administration), as the invoice is issued (real-time reporting) or after an invoice has been issued. In some cases, the submission of invoices relates to all transactions, or it may relate to specific information requests.

The large majority of countries surveyed (70 out of 86) do not require VAT/GST payers to submit their invoices electronically to the tax administration, and only 16 countries currently require VAT/GST payers to do this. In the EU, only 5 of the 28 Member States require electronic submission of invoices to the tax administration. Although this compliance obligation is not widespread, in the countries where it does apply, VAT/GST taxpayers may find compliance onerous. In particular, where submission is required before the invoice is issued, doing so can slow down the speed of trading, and it can add to administrative costs. Details of individual country responses to this question are outlined in Figure 23.

Source: EY

Figure 22: Electronic invoice submission to the tax administration (Question 11)

70

16

a) No

b) Yes

32


EY global survey

Figure 23: Country breakdown of countries that require taxpayers to submit invoices electronically to the tax administration (Question 11)

Countries where taxpayers are not required to submit invoices electronically

Countries where taxpayers are required to submit invoices electronically

• Albania• Armenia• Aruba• Australia• Austria• Belgium• BES• Bulgaria• Canada• Chile• Croatia• Curaçao• Cyprus• Czech Republic• Denmark• Equatorial Guinea• Estonia• Fiji• Finland• France• FYR Macedonia• Germany• Ghana• Guam• Iceland• India• Ireland• Isle of Man• Israel• Italy• Japan• Jordan• Kazakhstan• Kenya• Latvia

• Lebanon• Lithuania• Luxembourg• Malawi• Malaysia• Malta• Mexico• Mozambique• Namibia• The Netherlands• New Zealand• Norway• Panama• Paraguay• Philippines• Poland• Puerto Rico• Romania• Russia• Singapore• Sint Maarten• Slovakia• Slovenia• South Africa• Sri Lanka• Suriname• Sweden• Switzerland• Thailand• Trinidad and Tobago• Turkey• Venezuela• Vietnam• Zambia• Zimbabwe

• Argentina• Brazil• China• Dominican Republic• Ecuador• El Salvador• Georgia• Greece• Hungary• Moldova• Pakistan• Peru• Portugal• Spain• UK• Uruguay

33



Question 12: Are there any other requirements or opportunities to submit data electronically?a) Yesb) No

This question related to whether VAT/GST payers can or must submit additional information electronically to the tax administration (see Figure 24).

Less than half of the countries surveyed (37 out of 86) allow or require VAT/GST payers to submit additional information electronically to the tax administration. In the EU, 11 of the 28 Member States allow or require VAT payers to submit additional information to the tax administration electronically. Details of individual country responses to this question are outlined in Figure 25.

Source: EY

Figure 24: Electronic submission of other information (Question 12)

1

37

48

a) Yes

b) No

Not applicable

34


EY global survey

Figure 25: Country breakdown of electronic submission of other information to the tax administration (Question 12)

Countries where there are other requirements/opportunities to submit data electronically

Countries where there are no other requirements/ opportunities to submit data electronically

Countries where this does not apply

• Argentina• Armenia• Australia• Austria• Brazil• Canada• Czech Republic• France• Georgia• Germany• Hungary• Iceland• Jordan• Kazakhstan• Latvia• Lebanon• Lithuania• Malawi• Mexico• New Zealand• Paraguay• Peru• Philippines• Portugal• Russia• Singapore• Slovakia• Slovenia• South Africa• Spain• Sri Lanka• Switzerland• Trinidad and Tobago• Uruguay• Venezuela• Vietnam• Zimbabwe

• Albania• Aruba• Belgium• BES• Bulgaria• Chile• China• Croatia• Curaçao• Cyprus• Denmark• Dominican Republic• Ecuador• El Salvador• Equatorial Guinea• Estonia• Fiji• Finland• FYR Macedonia• Ghana• Greece• Guam• India• Ireland

• Isle of Man• Israel• Italy• Japan• Kenya• Luxembourg• Malaysia• Malta• Moldova• Mozambique• Namibia• The Netherlands• Norway• Pakistan• Panama• Poland• Puerto Rico• Romania• Sint Maarten• Suriname• Sweden• Thailand• UK• Zambia

• Turkey

35



Question 13: Do the tax authorities use electronic data extraction to perform tax audits?a) Yesb) No

This question related to whether tax administrations use electronic data extraction to carry out VAT/GST audits (see Figure 26). A tax administration may request or extract data from a VAT/GST payer’s system prior to or during the audit, or it may analyze data submitted by the VAT/GST payer (e.g., in a periodic VAT return or customer listing).

In 69 of the 86 countries surveyed, tax administrations use electronic data extraction to carry out VAT/GST audits. It seems likely that even more countries will use electronic data extraction in the future, given the wide availability of data analytic software, the increased use of risk-based audits and the increased focus by tax administrations generally on VAT/GST compliance. Details of individual country responses to this question are outlined in Figure 27.

Source: EY

Figure 26: Electronic data extraction by tax administrations (Question 13)

1

69

16

a) Yes

b) No

Not applicable

36


EY global survey

Figure 27: Country breakdown of electronic data extraction by tax administrations (Question 13)

Countries where the tax authorities use electronic data extraction

Countries where the tax authorities do not use electronic data extraction

Countries where this does not apply

• Argentina• Armenia• Aruba• Australia• Austria• Belgium• Brazil• Bulgaria• Canada• Chile• China• Croatia• Czech Republic• Denmark• Dominican Republic• Ecuador• El Salvador• Equatorial Guinea• Estonia• Finland• France• FYR Macedonia• Georgia• Germany• Ghana• Greece• Hungary• India• Ireland• Israel• Italy• Kazakhstan• Kenya• Latvia• Lebanon

• Lithuania• Luxembourg• Malawi• Malaysia• Malta• Mexico• Moldova• Namibia• The Netherlands• New Zealand• Norway• Pakistan• Panama• Paraguay• Peru• Philippines• Poland• Portugal• Puerto Rico• Russia• Singapore• Slovakia• Slovenia• South Africa• Spain• Sri Lanka• Switzerland• Thailand• Trinidad and Tobago• UK• Uruguay• Venezuela• Vietnam• Zimbabwe

• Albania• BES• Curaçao• Cyprus• Fiji• Guam• Iceland• Isle of Man• Jordan• Mozambique• Romania• Sint Maarten• Suriname• Sweden• Turkey• Zambia

• Japan

37



9

23

54

0–5

5–10

More than 10 years

Question 14: How long are taxpayers required to store data for tax purposes?a) 0–5 yearsb) 5–10 yearsc) More than 10 years

This question related to statutory retention periods for tax data (see Figure 28). Most countries (54 out of 86) require VAT/GST payers to retain data for between 5 and 10 years, 23 countries specify retention periods of up to 5 years, and 9 countries require records to be retained for longer than 10 years. Multinational companies operating in a number of jurisdictions may struggle to apply a range of document retention policies, but, given the volume of data that must be retained, it may not be practical to apply the longest data retention period as a default. Details of individual country responses to this question are outlined in Figure 29.

Source: EY

Figure 28: Retention of tax data (in years) (Question 14)

38


EY global survey

Figure 29: Country breakdown of retention of tax data (in years) (Question 14)

0–5 years 5–10 years More than 10 years

• Albania (5)• Armenia (5)• Australia (5)• Brazil (5)• Denmark (5)• Equatorial Guinea (5)• Estonia (5)• Greece (5)• Guam (3)• Jordan (4)• Kazakhstan (5)• Namibia (5)• Panama (5)• Paraguay (5)• Peru (4)• Philippines (3)• Poland (5)• Russia (4)• Singapore (5)• South Africa (5)• Spain (4)• Sri Lanka (5)• Turkey (5)

• Argentina (statute of limitation period, generally 7 years but can be up to 10 years)

• Aruba (10)• BES (7)• Bulgaria (5 years after the expiry of the statute

of limitation)• Canada (6)• Chile (6)• China (10)• Croatia (10)• Curaçao (10)• Cyprus (6)• Czech Republic (10)• Dominican Rep (10)• Ecuador (7)• El Salvador (10)• Fiji (7)• Finland (invoices, correspondence and receipts, 6

years; accounts and account books, 10 years)• France (6)• FYR Macedonia (10)• Georgia (6)• Germany (10)• Ghana (6)• Hungary (supporting documents — statute of limitations,

5 years; accounting documents, 8 years).• Iceland (7)• Ireland (6)• Isle of Man (6)• Israel (the later of 6 years from the date the of

submission or 7 years from the year of assessment)• Italy (5 years; corporate law, 10 years)• Japan (7)• Kenya (7)• Latvia (VAT, 5 years; real estate, 10 years; accounting

registers, 10 years; payroll taxes, 75 years)• Lebanon (10)• Lithuania (10)• Luxembourg (10)• Malawi (6)• Malaysia (6)• Mexico (statute of limitations is 5 years following the

day on which a tax return is filed or should have been filed; can be extended to 10 years)

• Mozambique (10)• The Netherlands (7 years; immovable property, 10 years)• New Zealand (7)

• Austria (7 years; immovable property, 22 years)• Belgium (7 years; immovable property, 15 years)• India (generally 5 to 12 years)• Malta (6 years; Capital Goods Scheme, 11 to 26 years)• Moldova (minimum of 4 years; tax documents have

different archiving terms that could vary from 4 to 75 years)

• Slovakia (10 years; more for Capital Goods Scheme)• Slovenia (10 years after the year to which the invoices

relate; real estate, 20 years)• Switzerland (generally 10 years; real estate, 26 years)• Vietnam (legally, there is no limitation for storing data

for tax purposes)

39



0–5 years 5–10 years More than 10 years

• Norway (10)• Pakistan (6)• Portugal (10)• Puerto Rico (6)• Romania (5 years; tax evasion, 10 years)• Sint Maarten (10)• Suriname (10)• Sweden (7)• Thailand (5 years but can be extended to 7 years)• Trinidad and Tobago (6)• UK (6)• Uruguay (statute of limitation, 5 years; fraud, 10 years)• Venezuela (statute of limitations, generally 4 years

but can be extended to 6 years)• Zambia (6)• Zimbabwe (6)

40


EY global survey

41

34

25

54

a) Yes, automatically

b) Yes, with agreement from the tax authority

Not applicable

c) No

Question 15: Are taxpayers permitted to store data for tax purposes electronically?a) Yesb) Yes, with agreement from the tax authorityc) No

This question related to how VAT/GST payers may store tax data (see Figure 30). Only 4 countries do not permit electronic storage of tax data; of the 79 countries that allow electronic data, 54 allow businesses to use electronic data storage automatically, while 25 countries require prior approval. All 28 EU Member States permit electronic archiving of tax data, but VAT/GST payers must request tax administration permission to use electronic storage in 9 Member States. Details of individual country responses to this question are outlined in Figure 31.

Source: EY

Figure 30: Electronic storage of tax data (Question 15)

42


EY global survey

Figure 31: Electronic data storage (Question 15)

Countries where taxpayers are automatically permitted to store data electronically

Countries where taxpayers are permitted to store data electronically with agreement from the authorities

Countries where taxpayers are not permitted to store data electronically


• Albania• Armenia• Aruba• Australia• Austria• Belgium• BES• Brazil• Bulgaria• Canada• Croatia• Curaçao• Czech Republic• Denmark• Dominican Republic• El Salvador• Estonia• Finland• France• Georgia• Germany• Guam• Iceland• Ireland• Isle of Man• Italy• Jordan

• Lebanon• Lithuania• Luxembourg• Malawi• Mexico• Namibia• The Netherlands• New Zealand• Norway• Pakistan• Peru• Poland• Puerto Rico• Russia• Singapore• Sint Maarten• Slovenia• Spain• Suriname• Switzerland• Thailand• Trinidad and Tobago• UK• Uruguay• Venezuela• Vietnam• Zimbabwe

• Argentina• China• Cyprus• Ecuador• Equatorial Guinea• FYR Macedonia• Ghana• Greece• Hungary• India• Israel• Japan• Latvia• Malaysia• Malta• Moldova• Panama• Philippines• Portugal• Romania• Slovakia• South Africa• Sweden• Turkey• Zambia

• Chile• Fiji• Paraguay• Sri Lanka

• Kazakhstan• Kenya• Mozambique

43



1

18

7

20

40

a) Yes, automatically

b) Yes, with agreement from the tax authority

Not applicable

a) and b)

c) No

Question 16: Are taxpayers permitted to store data outside their country of residence (e.g., in a data warehouse, in the cloud)?a) Yesb) Yes, with agreement from the tax authorityc) No

This question related to where VAT/GST payers may store tax data. In particular, it asked whether indirect tax data can be stored outside the VAT/GST payer’s country of residence — for example, at a regional SSC, in a data warehouse or in the cloud (see Figure 32). Only 18 countries do not allow tax data to be stored outside the VAT/GST payer’s country of residence, and 7 countries indicated that the question did not apply to local tax rules. Of the 61 countries that do allow offshore storage of tax data, 40 allow businesses to use offshore storage automatically, while 20 countries require prior approval (and in Portugal, approval may be required, depending on the circumstances). In the EU, only Latvia, Luxembourg and Romania do not permit offshore data storage; VAT/GST payers must request tax administration permission to use offshore data storage in 11 of the remaining 27 Member States. Details of individual country responses to this question are outlined in Figure 33.

Source: EY

Figure 32: Storage of tax data outside the VAT/GST payer’s country of residence (Question 16)

44


EY global survey

Figure 33: Country breakdown of whether tax data may be stored outside the VAT/GST payer’s country of residence (Question 16)

Countries where taxpayers are automatically permitted to store data outside their country

Countries where taxpayers are permitted to store data outside their country with agreement from the authorities

Countries where taxpayers are not permitted to store data outside their country


Countries where taxpayers are automatically permitted to store data outside their country or with the agreement of the authorities depending on the circumstances

• Albania• Aruba• Australia• Austria• BES• Brazil• Bulgaria• Chile• China• Curaçao• Czech Republic• Dominican Republic• El Salvador• Estonia• Finland• France• Georgia• Guam• Isle of Man• Italy• Jordan• Lebanon• Lithuania• Malawi• Malta• Mexico• Namibia• The Netherlands• Pakistan• Poland• Puerto Rico• Russia• Singapore• Sint Maarten• Slovakia• South Africa• Suriname• Switzerland• UK• Uruguay

• Belgium• Canada• Croatia• Cyprus• Denmark• Equatorial Guinea• Germany• Greece• Hungary• Iceland• Ireland• Moldova• New Zealand• Norway• Panama• Philippines• Slovenia• Spain• Sweden• Trinidad and Tobago

• Argentina • Armenia• Ecuador• Fiji• FYR Macedonia• Ghana• India• Israel• Japan• Latvia• Luxembourg• Malaysia• Romania• Thailand• Turkey• Venezuela• Vietnam• Zambia

• Kazakhstan• Kenya• Mozambique• Paraguay• Peru• Sri Lanka• Zimbabwe

• Portugal

45



VAT/GST

ContactsGlobal Director — Indirect Tax

Americas Europe, Middle East, India and Africa (EMEIA)

Asia-Pacific


Asia-Pacific

Global Trade

Jeffrey N. Saviano+ 1 212 773 0780 (New York)+ 1 617 375 3702 (Boston)[email protected]

Jean-Hugues Chabot+ 1 514 874 [email protected]

Gijsbert Bulk+ 31 88 407 11 [email protected]

Robert Smith+ 86 21 2228 [email protected]

William M. Methenitis+ 1 214 969 [email protected]

Neil Byrne+ 353 1 221 [email protected]

Robert Smith+ 86 21 2228 [email protected]

Philip Robinson+ 41 58 286 [email protected]

46


Asia-Pacific

Indirect tax data and analytics contacts

Karen Christie+ 1 212 773 [email protected]

Ronnie Dassen+ 1 212 773 [email protected]

Anne Freden+ 1 415 894 [email protected]

Corin Hobbs+ 1 408 947 [email protected]

Michael Leightman+ 1 713 750 [email protected]

Faranak Naghavi+ 1 202 327 [email protected]

Kristine Price Dozier+ 1 212 773 [email protected]

Jeffrey York+ 1 612 371 [email protected]

Gwenaelle Bernier+ 33 2 5117 [email protected]

Charles Brayne+ 44 207 951 [email protected]

Folkert Gaarlandt+ 27 1 1772 [email protected]

Colm Halpin+ 353 1 2212 [email protected]

Adrian Hextall+ 44 207 951 [email protected]

Hans Roekaerts+ 44 207 951 [email protected]

John Sloot+ 31 88 40 [email protected]

Edwin van Loon+ 31 88 40 [email protected]

Aaron Bromley+ 60 3 7495 [email protected]

Marc Bunch+ 61 2 9248 [email protected]

Andrew Cavenor+ 61 2 8295 [email protected]

Mark Tafft+ 61 2 8295 [email protected]

47

48

EY | Assurance | Tax | Transactions | Advisory

About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com.

About EY’s Indirect Tax servicesIndirect taxes, ranging from VAT and customs duties to environmental levies, affect the supply chain and the financial system. They pose unique challenges to multi-national tax functions, since they must be managed accurately and in real time. These often invisible taxes can have significant impacts — on cash flow, absolute costs and risk exposures.

Thanks to our network of dedicated Indirect Tax professionals, who share knowledge and ideas, we can provide a seamless, consistent service throughout the world and deal effectively with cross-border issues. These include advising on the VAT treatment of new and complex transactions and supplies and helping resolve classification or other disputes and issues with the authorities.

We provide assistance in identifying risk areas and sustainable planning opportunities for indirect taxes throughout the tax lifecycle. We provide you with effective processes to help improve your day-to-day reporting for indirect tax, reducing attribution errors, reducing costs and ensuring indirect taxes are handled correctly.

We can support full or partial VAT compliance outsourcing, help identify the right partial exemption method and review accounting systems. Our customs and international trade team help you manage customs declarations, audit and review product classifications and evaluate import/export documentation. Our globally integrated teams give you the perspective and support you need to manage indirect taxes effectively.

© 2014 EYGM Limited. All Rights Reserved.

EYG no. DL0935

ED none

This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.

ey.com

Documents

EY global survey global survey on managing indirect taxes — VAT/GST electronic filing and data extraction ... VAT/GST returns E-filing and electronic payments can help to